Flat on the pound right now - structure restricted.
Despite solid gains recorded on the EUR and a considerable decline in the US dollar on Thursday, the British pound failed to sustain gains beyond the 1.31 handle. Continued rejection from 1.31 may see the H4 candles revisit the 1.3053-1.3037 area (a recently broken supply turned support area), whereas a move above 1.31 will almost immediately bring price into the arms of a supply area marked at 1.3164-1.3132.
The story over on the bigger picture shows daily action has recently engulfed the resistance area at 1.3058-1.2979 and now appears poised to challenge supply coming in at 1.3278-1.3179 (fuses with a trendline resistance taken from the high 1.3480). Be that as it may, let’s not forget that we still have weekly price trading within supply at 1.3120-1.2957 (albeit around the upper edge of this area).
Suggestions: Along similar lines to the EUR, we do not see any immediate trading opportunity at the moment. A buy above 1.31 would, as we highlighted above, place you in direct fire with H4 supply at 1.3164-1.3132 as well as weekly supply at 1.3120-1.2957. A sell from 1.31, although H4 structure shows a little more wiggle room down to the support area at 1.3053-1.3037, the trade would have you selling into potential daily (breakout) buyers.
Data points to consider: UK manufacturing production m/m at 9.30am. FOMC Harker speaks at 1.45pm GMT+1.
The story over on the bigger picture shows daily action has recently engulfed the resistance area at 1.3058-1.2979 and now appears poised to challenge supply coming in at 1.3278-1.3179 (fuses with a trendline resistance taken from the high 1.3480). Be that as it may, let’s not forget that we still have weekly price trading within supply at 1.3120-1.2957 (albeit around the upper edge of this area).
Suggestions: Along similar lines to the EUR, we do not see any immediate trading opportunity at the moment. A buy above 1.31 would, as we highlighted above, place you in direct fire with H4 supply at 1.3164-1.3132 as well as weekly supply at 1.3120-1.2957. A sell from 1.31, although H4 structure shows a little more wiggle room down to the support area at 1.3053-1.3037, the trade would have you selling into potential daily (breakout) buyers.
Data points to consider: UK manufacturing production m/m at 9.30am. FOMC Harker speaks at 1.45pm GMT+1.
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